Climate change has become a global priority, affecting industries worldwide—including technology. As temperatures rise and environmental challenges grow, renewable energy has emerged as a key solution. Companies, institutions, and individuals are increasingly transitioning from traditional energy sources to renewable ones to reduce their environmental footprint. One sector at the forefront of this transformation is the data center industry. In this article, we explore how renewable energy is shaping the future of data centers and driving sustainability.

The Rise of Renewable Energy

Renewable energy refers to power generated from natural and sustainable sources, such as sunlight, wind, water, and geothermal heat. According to the International Energy Agency (IEA) Renewable Report 2024, renewable energy consumption across power, heat, and transportation sectors is projected to grow by over 60%. In the electricity sector, renewables are expected to rise from 30% of global power generation in 2023 to 46% by 2030.

This significant growth highlights an increasing awareness among businesses and institutions about the need to adopt environmentally responsible practices. For data centers—known for their high energy demands—this shift to renewable energy offers opportunities to reduce carbon emissions, lower operational costs, and align with sustainability goals.

Read more: Digital Edge’s Green Finance Framework 2024

How to Integrate It into Data Centers?

Integrating renewable energy into data centers may seem daunting, especially when traditional energy sources dominate. However, the transition can be gradual, with several key strategies that allow data centers to move towards sustainability without disrupting their operations. Several strategies includes:

• Invest in Renewable Energy Assets

Investing in renewable energy technologies is a powerful first step. By incorporating sustainable energy assets, data centers can reduce operational costs while supporting green initiatives. For instance, using solar panels, wind turbines, and hydropower to generate electricity with large capacities.

• Power-Purchase Agreements (PPAs)

Another effective strategy is to sign a long-term contract with energy suppliers to purchase renewable energy. These agreements come in various forms:

• Utility-scale PPAs: Large-scale renewable energy purchases
• Corporate PPAs: Direct agreements between companies and energy suppliers
• Virtual PPAs: A flexible option that allows companies to offset their energy consumption without physically receiving the energy.

Each type of PPA offers distinct benefits depending on the data center’s needs and goals.

• Leverage Renewable Energy Certificates (RECs)

Renewable Energy Certificates (RECs) serve as proof that electricity has been generated from renewable sources. They help data centers track and verify their sustainability efforts while supporting the broader renewable energy market. By integrating these strategies, data centers can take meaningful steps toward sustainability, reduce their environmental impact, and build a more energy-efficient future.

Renewable Energy Data Center in Indonesia

Indonesia is emerging as a key player in the renewable energy movement. The national electricity provider, PLN, has introduced clean and reliable energy solutions to support the growth of the data center industry. The data center industry itself has the potential to unlock economic opportunities worth up to $3.37 billion USD, while accelerating digital transformation in the region.

One notable and latest example is EDGE DC’s newest facility, EDGE2, which has received a 100% Renewable Energy Certificate (REC) from PLN. This follows our EDGE1 data center’s first utilization of RECs back in 2022. This certification underscores our commitment to integrating sustainable practices into data center operations and contributing to Indonesia’s green energy goals. In addition, EDGE2 implemented Nortek’s StatePoint® liquid cooling technology. This cutting-edge system reduces the energy required for cooling, cutting down our carbon footprint and further enhancing energy efficiency.

Related article: EDGE DC Becomes the First Operator in Indonesia to Deploy 100% REC and StatePoint Liquid Cooling® Technology

Conclusion

The future of data centers lies in renewable energy. As global demand for sustainable solutions grows, integrating renewable energy into data center infrastructure is no longer optional—it’s essential. Our EDGE2 facility is leading the way by harnessing renewable energy to support green IT initiatives. Together, we can power a more sustainable future, reduce environmental impact, and drive innovation in the tech industry. Reach out to our team for more information and enquiries.